Date of Report (Date of Earliest event Reported): July 13, 2012 (July 9, 2012)
CHINA VALVES TECHNOLOGY, INC.
21F Kineer Plaza
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions ( see General Instruction A.2. below):
ITEM 4.01. CHANGES IN REGISTRANTS CERTIFYING ACCOUNTANT.
On July 9, 2012, BDO China Shu Lun Pan CPAS LLP (BDO China) informed the Audit Committee of the Board of Directors (the Audit Committee) of China Valves Technology, Inc. (the "Company") of its decision to resign as the Company's independent registered public accounting firm due to managements request to substantially lower BDO Chinas professional service fees, effective immediately.
The Audit Committee did not recommend or approve the decision to change auditors. In addition, the Audit Committee did not approve the fee reduction requested by management and did not authorize management to communicate with BDO China regarding the fee reduction. Accordingly, the Audit Committee and the Board adopted resolutions to confirm the engagement letter with BDO China and authorized and directed management to retract its fee reduction proposal. Thereafter, management formally notified BDO China in writing of the retraction of managements fee reduction proposal. The Audit Committee has contacted BDO China in order to discuss the withdrawal by BDO China of its resignation.
The Company engaged BDO China from November 3, 2011 through July 8, 2012 (the Engagement Period). During the Engagement Period, BDO China did not issue any reports on the Companys financial statements. Other than the issues disclosed above and the issues disclosed in the Current Report on Form 8-K filed on February 14, 2012 and February 28, 2012 regarding restatements of the Companys financial statements, during the Engagement Period, there were (1) no disagreements with BDO China on any matter of accounting principles or practices, financial statement disclosure, or auditing scope or procedures, which disagreements, if not resolved to the satisfaction of BDO China, would have caused BDO China to make reference to the subject matter of the disagreements in connection with its report, and (2) no events of the type listed in paragraphs (A) through (D) of Item 304(a)(1)(v) of Regulation S-K.
In accordance with Item 304(a)(3) of Regulation S-K, the Company provided BDO China with a copy of this disclosure on July 12, 2012, requesting BDO China to furnish the Company with a letter addressed to the Securities and Exchange Commission (the SEC) stating whether it agrees with the statements contained herein. BDO China has not yet indicated whether or not it agrees with such statements.
If BDO does not withdraw its resignation, the Company will select a new independent registered public accounting firm, and will file a subsequent Current Report on Form 8-K when that selection is made.
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
China Valves Technology, Inc.
Date: July 13, 2012